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Project Syndicate: Trump may bury the global recovery, Roubini says

NEW YORK (Project Syndicate) — How does the current global economic outlook compare to that of a year ago? In 2017, the world economy was undergoing a synchronized expansion, with growth accelerating in both advanced economies and emerging markets. Moreover, despite stronger growth, inflation was tame — if not falling — even in economies like the United States, where goods and labor markets were tightening.

Stronger growth with inflation still below target allowed unconventional monetary policies either to remain in full force, as in the eurozone and Japan, or to be rolled back very gradually, as in the U.S.

The combination of strong growth, low inflation, and easy money implied that market volatility was low.

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